OCBC – scaling up Indonesia retail and wealth
🥇Currently the best performing bank in Singapore and ranking 8th on the list of best performing index shares on the benchmark Straits Times Index, $OCBC Bank(O39.SI)$ announced this week their acquisition of HSBC’s retail and wealth management operations in Indonsia
The transaction includes a SGD 6.6 billion assets under management and 336,000 loan accounts primarily in credit cards
The acquisition news have come ahead of the bank’s first quarter result announcement before market this Friday
According to Bloomberg, most analysts have responded positively to the acquisition
✍Find out what Macquarie Research’s (MQ) has to say about OCBC’s latest acquisition and whether there is any change in their price target and ratings on the stock
👀Read more for the full article containing excerpts of MQ’s report published on 5 May 2026, and important disclaimers:
Key points
OCBC has entered into an agreement to acquire HSBC's Indonesia International and Premier Wealth retail business
Whilst modest to the overall group adding around 2% wealth assets and 0.5% deposits, OCBC's Indonesia franchise has a strong market position
MQ re-iterates their Outperform rating on OCBC and S$23.93/share target price. OCBC reports 1Q26 earnings on 8-May pre-market
Scaling up retail and wealth in Indonesia. OCBC is acquiring S$6.6 billion equivalent AUM (of which S$4.3 billion are in investments with S$2.3 billion in deposits) and a very modest loan exposure of S$0.3 billion. The business includes 336k loan accounts, primarily credit cards, and an employee base of 1,300. HSBC Indonesia has 28 retail branches, relative to OCBC's 201 in the country.
OCBC's Indonesia subsidiary is the largest and most profitable of the Singapore banks. It is the 8th largest bank in the market, and well positioned to absorb and grow HSBC's retail franchise, in MQ’s view. Whilst Indonesia is out of favour from a policy and macro perspective, OCBC is a long-term player in the market. The management team has been very stable, led by the Surjaudaja family who were the controlling shareholders before OCBC invested in the early 2000s, and occupy local CEO and President Commissioner positions.
Financial impact on OCBC group. MQ estimates the HSBC Indonesia retail franchise generated an annual profit after tax and minority interests (PATMI) of around S$30 million based on FY25 accounts, with most of the income on fee income and deposit spreads. MQ estimates a pro-forma impact to group CET1 of -0.3ppt. MQ estimates OCBC is paying 1.6x price to book for the business, based on the S$480 million disclosed premium. These are all preliminary estimates and subject to confirmation.
Earnings changes: MQ makes no changes to their forecasts. OCBC reports earnings on 8 May. MQ is expecting S$1.9 billion PATMI for the quarter.
Valuation: MQ’s unchanged price target of S$23.93/share (based on a Gordon Growth Model stock methodology) is based on 13.1% return of total equity, 8.7% cost of equity and 1.7% growth.
Catalysts: Upcoming 1Q26 results which could show positive wealth trends; further strategic updates in 2H26 from OCBC's recently appointed CEO.
Note:
Macquarie Research is independent from the Warrants business, what the Macquarie Warrants desks quote from Macquarie Research may not reflect the complete analysis of Macquarie Research on the relevant company over time.
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Macquarie’s trending OCBC call and put warrants are priced at $0.045 and $0.038 respectively, while OCBC trades at $21.86 this morning, and moves approximately 7.5 time to 8 times more than OCBC shares, based on their effective gearing levels as of 905AM.
Investors interested in seeking a geared exposure to OCBC shares without margin calls may wish to consider using the OCBC warrants to trade the moves in OCBC shares.
See how the warrants move alongside OCBC shares here:
Trending OCBC call $OCBC Bk MB eCW260930(IGBW.SI)$ : https://warrants.com.sg/tools/exposuresimulator/IGBW
Trending OCBC put $OCBC Bk MB ePW260930(V8QW.SI)$ : https://warrants.com.sg/tools/exposuresimulator/V8QW
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